Source: Computershare
Computershare Investor Services plc was yesterday appointed by HM Treasury to act as the new registrar for UK Government bonds (gilts).
The agreement will see Computershare assume responsibility for the Government's gilts registration service comprising all receiving and paying agent functions. This includes the payment of gilt dividends and redemptions, the processing of new issues and the operation of the brokerage service on behalf of the UK Debt Management Office.
The contract will run for an initial period of five years with the option to extend for a further period of up to five years, and is expected to achieve the benefit of significant economies of scale for the Government.
Rob Chapman, Managing Director, EMEA at Computershare said: "We are delighted to have won this mandate. It is a logical extension of our current share registry offering, and represents an important step forward in our strategy to extend our existing product range. We look forward to a long and successful partnership with HM Treasury."
The service was put out to tender last year following a review of the Government's debt management arrangements with a view to securing the benefits of economies of scale and achieving best value for the taxpayer. Computershare won the mandate following a competitive tender exercise.
Computershare will now work closely with the current service provider, the Bank of England, to ensure a smooth transition of the gilts registration service. The transfer is expected to take place in December 2004, with minimal disruption and no significant changes to the service currently provided. Stockholders will be kept informed of ongoing arrangements.